MTFs change tick sizes in response to FESE agreement

Multilateral trading facilities (MTFs) Chi-X Europe and Burgundy will change tick sizes for certain indices following last week’s agreement between the Federation of European Securities Exchanges (FESE), the London Investment Banking Association (LIBA) and four MTFs to harmonise tick sizes across Europe.

Multilateral trading facilities (MTFs) Chi-X Europe and Burgundy will change tick sizes for certain indices following last week’s agreement between the Federation of European Securities Exchanges (FESE), the London Investment Banking Association (LIBA) and four MTFs to harmonise tick sizes across Europe.

For the first part of its harmonisation process, Chi-X Europe, a pan-European MTF, will implement FESE table four tick sizes from 16 July for the Belgian BEL 20, the Dutch AEX 25 and AMX 25, the French CAC 40 and CAC Next 20 and the Portuguese PSI 20 indices.

In this table, prices from 0 to €9.999 have a tick size of €0.001, prices from €10.000 to €49.995 have a tick size of €0.005, prices from €50.000 to €99.99 have a tick size of €0.01 and prices of €100.00 and above have a tick size of €0.05.

Until further notice, securities in those markets but outside of the specific indices will continue to use the existing table, where prices of between 0 and €9.999 have a tick size of €0.001 and prices of €10.000 and above have a tick size of €0.005.

From 7 July, Burgundy, which specialises in Nordic stocks, will implement FESE table two for the most frequently traded Swedish, Finnish and Danish stocks in its Burgundy STAGE test system.

Tick sizes in FESE table two range from €0.0001 for prices between 0 and €0.4995, and €10 from prices of €10.000 and above.

On 30 June, four MTFs – Chi-X Europe, Turquoise, BATS Europe and Nasdaq OMX Europe – agreed to implement the same tick size tables to the same timelines as seven national exchanges. Nasdaq OMX, Oslo Børs, the London Stock Exchange Group and SIX Swiss Exchange will use FESE table two, while BME (Bolsas y Mercados Españoles), Deutsche Börse and NYSE Euronext will adopt table four.

The exchanges will implement the changes within a range of two weeks to six months depending on the needs of their users.